Dominican Republic Real Estate FAQ – Complete 2026 Guide for Buyers
Buying property in the Dominican Republic is straightforward, but investors should understand the legal framework, taxes, and ownership rules before making a decision. Below are the most important questions answered clearly for 2026.
Can Foreigners Buy Property in the Dominican Republic?
Yes. Foreigners have the same property ownership rights as Dominican citizens. There are no restrictions based on nationality, and you can legally hold title in your own name or through a company structure.
The Dominican Republic remains one of the most foreign-investor-friendly real estate markets in the Caribbean.
What Is the Process to Buy Property in the Dominican Republic?
The purchase process is structured and secure when handled properly:
1. Select the Property
Choose the property that fits your investment or lifestyle goals.
2. Sign a Purchase Agreement
A formal agreement outlines price, payment terms, and timelines.
3. Legal Due Diligence
A real estate attorney verifies title, confirms no liens or encumbrances, and reviews documentation.
4. Transfer Funds & Close
Funds are transferred, contracts are finalized, and the property is registered in your name at the title office.
There are no ownership restrictions for foreigners.
What Are the Closing Costs?
Plan for approximately 4% of the purchase price:
- 3% Government transfer tax
- Around 1% Legal fees (varies by attorney and transaction complexity)
Closing costs may vary slightly depending on structure and property value.
Are There Annual Property Taxes?
Yes. The annual property tax (IPI) is:
1% of the government-appraised value exceeding approximately USD 175,000.
Example:If a property is valued at USD 200,000, the 1% tax applies only to the USD 25,000 difference.
Primary residences under the exemption threshold are not subject to this tax.
Do I Need Residency to Own Property?
No. Property ownership and residency are separate.
However, residency can provide advantages:
- Long-term stays without overstay fees
- Access to local banking
- Potential tax structuring benefits
- Simplified renewals
How Long Can I Stay in the Dominican Republic?
Tourist entry typically allows a 30-day stay. Longer stays are possible, with overstay fees payable upon departure. Residency is recommended for frequent or long-term stays.
Is Healthcare Reliable in the Dominican Republic?
Yes. Private healthcare in major cities and on the north coast is modern and affordable compared to North America and Europe.
- Doctor visits are generally low cost
- Private insurance plans are competitively priced
- Several internationally trained physicians operate in the country
Healthcare quality depends on provider and location.
Why Work With a Real Estate Agent?
- Accurate market pricing
- Access to off-market opportunities
- Negotiation support
- Guidance through legal and closing procedures
- Local knowledge of communities and rental demand
Professional representation reduces risk and improves transaction efficiency.
Is Hiring a Lawyer Necessary?
Yes. A real estate attorney is essential to:
- Conduct full due diligence
- Verify clear and transferable title
- Review and draft contracts
- Ensure proper registration at closing
Skipping legal review exposes buyers to unnecessary risk.
Are There Affordable Properties in the Dominican Republic?
Yes, particularly on the north coast (Sosúa, Cabarete, Puerto Plata region).
Approximate price ranges in 2026:
- Studios from around USD 60,000
- Condos under USD 100,000
- Mid-range villas between USD 200,000–400,000
- Luxury beachfront estates in the multi-million range
Pricing varies by location, proximity to the beach, and community amenities.
Final Considerations
The Dominican Republic offers:
- Foreign ownership security
- Competitive entry prices
- Strong rental demand in tourism zones
- A growing and stable real estate market
With proper legal guidance and market knowledge, buying property in the Dominican Republic in 2026 can be both secure and profitable.
